Customer Quote by Michael Lewis
““The triple-A tranches all traded at one price, the triple-B tranches all traded at another, even though there were important differences from one triple-B tranche to another. As the bonds were all priced off the Moody’s rating, the most overpriced bonds were the bonds that had been most ineptly rated. And the bonds that had been most ineptly rated were the bonds that Wall Street firms had tricked the rating agencies into rating most ineptly. “I cannot fucking believe this is allowed,” said Eisman.””
About This Quote
Source Book: The Big Short by Michael Lewis, 2010
The quote critiques how rating agencies were manipulated, leading to mispriced bonds and systemic risk.
In simple terms: Rating agencies were misled, causing dangerous bond pricing.
Key Takeaway
Demand transparency and accountability in financial ratings.
Themes
finance
ethics
systemic risk
Mood
cautionary
analytical
Type
financial
critical
When to use this quote
- investment analysis
- regulatory reform
- risk management
Key Concepts
rating manipulation
conflict of interest
Questions to Reflect On
- What safeguards can prevent rating abuse?
- How can investors verify true risk?
A Different Perspective
Complex markets may still hide hidden biases despite reforms.
![“Crucial decisions are made, today as thousands of years ago, in terms of the intuitive guesses and preferences of a few men in positions of authority...[it is] quite likely that the fate of entire societies may be sealed by a series of avoidable mistakes committed by their leaders.” quote by Michael Lewis](https://sms4smile.com/quotes/img-quotes/a59/michael-lewis-705_decision-making_crucial-decisions-are-made-today-as-thou_16888.jpg)
